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FIEs complain about overtime hours, compulsory social insurance

Foreign invested enterprises (FIEs) complain that regulations related to the use of laborers are creating difficulties for their operations.

VietNamNet Bridge - Foreign invested enterprises (FIEs) complain that regulations related to the use of laborers are creating difficulties for their operations.


The number of overtime hours must not be higher than 200 hours a year

The representatives of FIEs attending a meeting with the Binh Duong provincial authorities in late July voiced the same opinion that the regulation about the maximum number of overtime hours is unreasonable. 

Under the current laws, the number of overtime hours must not be higher than 200 hours a year, and in special cases, must not be higher than 300 hours.

Meanwhile, many workers want more overtime hours to have extra income, while enterprises want more overtime hours to fulfill urgent orders.

Under the current laws, the number of overtime hours must not be higher than 200 hours a year, and in special cases, must not be higher than 300 hours.

The senior executive of a paint manufacturing enterprise in BInh Duong province said the current regulation puts pressure on enterprises. Because of the sharp increase in number of orders, the company encourages its workers to do overtime. However, with the limitation of 200 hours, the company still cannot fulfill all its work.

The director of a wooden furniture manufacturing company in Song Than 2 IZ also made a similar complaint, saying that if the current regulation cannot be amended, the company will have to recruit new workers. However, it is very difficult to find workers at this moment.

“In previous years, the supply of workers was plentiful as there were many workers moving there from the north. However, workers don’t migrate to the south anymore, because a lot of IZs have also been set up in the north,” he explained.

The lack of untrained workers in the locality was confirmed by the labor management agency. However, the agency is not in the position to settle the problem. Any amendments need to be ratified by the National Assembly, while FIEs have been told to wait at least until 2019.

Under the 2014 Social Insurance Law, from January 1, 2018, foreign workers in Vietnam have to pay compulsory social insurance premium.

The draft decree that guides the implementation of the law affirms that social insurance is a must for foreign workers. In general, the policies applied to foreign workers are nearly the same as Vietnamese workers, which include sickness, maternity, labor accidents, retirement and death allowance.

The decree compilers are considering two options, either all the five sections will be valid from January 1, 2018, or only three regimes – sickness, maternity and labor accident – will be valid from January 1, 2018, while the other two will be valid from January 1, 2020.

The Investment & Trade Working Group of the Vietnam Business Forum has found some problems in the draft decree.

It would be difficult to calculate the total time a worker pays social insurance premium, if he pays premiums for five years in Thailand and another five years in Singapore and then comes to Vietnam.


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